Milwaukee Biz Blog

Since the 1960s, Wisconsin has largely stood by while other states aggressively competed for their fair share of federal grants and aid. That bottom-quartile performance among the 50 states is why Wisconsin has long been known as a “tax donor” state, meaning its taxpayers contribute far more to the feds than they get in return.

Now an award of $810 million in federal stimulus money will extend high-speed rail from the Chicago-Milwaukee corridor to Madison and, in time, to the Twin Cities area in Minnesota. For once, Wisconsin got to the train station on time.

By working with other Midwest states, Wisconsin made a compelling case to get a share of the $8 billion in federal high-speed rail grants. About $55 billion in requests were submitted, many from larger states, yet the Wisconsin line was selected to receive more than 10 percent of the total pie. Only Florida and California (states with many times Wisconsin’s population) and another Midwest project stretching from Chicago to St. Louis received larger federal grants.

That’s a result of Midwest states hanging together instead of hanging separately. At the Midwest High Speed Rail Summit in Chicago last summer, eight states signed a memorandum of understanding that delivered a clear message of political unanimity. Wisconsin Gov. Jim Doyle was among five governors who pushed for the summit, which led to Washington receiving one regional set of priorities instead of potentially competing plans.

Opponents of high-speed rail will continue to question the federal investment and what it might cost states in matching dollars, but there are reasons to celebrate the Jan. 28 announcement vs. lying down on the tracks:

• Better connections for Wisconsin: Milwaukee will get two more lines to Chicago and Madison will be connected to Chicago via Milwaukee by 2013, if all goes as planned. Those are vital connections for commerce within the region and they help to establish better connections to the East and West Coasts – and beyond.
• Better connections for the region: The proposed line to the Twin Cities would tie together the major hubs of the “I-Q Corridor,” which extends from Chicago through Wisconsin and into Minnesota. A distance of only 400 miles separates two dynamos of the Midwest economy – Chicago and Minneapolis/St. Paul. That’s a shorter distance than what separates San Diego from the “Silicon Valley” in California. Within the region are some of the nation’s leading research universities, federal labs, financial centers, tech companies and talent pools. High-speed rail will help bring them closer together.
• More travel choices make sense: Rail will give people another option while easing congestion on highways and in airports. As the economy improves, air travel will see more delays, the Brookings Institution noted in a recent report. Lengthy airline delays (two hours or more) are twice as common now as in 1990 and may get worse as the economy recovers. By the way, half of all flights in the United States and 30 percent of the passenger traffic take place on trips of 500 miles or less – well within the range of the Wisconsin lines.
• High-speed rail use is growing: Passenger rail ridership has been trending up nationally. Amtrak carried nearly 27.2  million passengers in fiscal 2009, marking the second highest ridership total since the National Railroad Passenger Corp. began operations in 1971. The 27.2 million passengers for the 12 months ending Sept. 30, 2009, fell short of the all-time record of 28.7 million for fiscal 2008, but exceeded fiscal 2007 by 5.1 percent.
• It will create jobs: State officials have estimated the project would lead to 13,000 jobs in construction and manufacturing in Wisconsin. Some of those are train manufacturing jobs through an agreement between Wisconsin and Patentes Talgo, the Spanish train maker. That 13,000 estimate may not be far off, according to the American Association of Railroads. It calculates that each $1 billion in rail investment creates 20,000 jobs.

The costs of high-speed rail are high - but so are highways and air travel, which are also heavily subsidized.  Wisconsin can gain a competitive advantage through high-speed rail while strengthening its role as an economic player in the Upper Midwest. With help from its neighbors, Wisconsin finally won a major federal lobbying campaign. Let’s keep it on track.

Tom Still is president of the Wisconsin Technology Council.

The sun is the source of all energy on Earth. Yet, here in Wisconsin, the direct use of the immense energy of the sun is not considered a renewable resource. Most people do not believe this when the concept is first introduced to them because they know - intuitively - there is nothing more renewable than the sun … at least for the next 5 billion years.

But it’s true.

It will take a majority vote of both the Assembly and the Senate at the state Capitol and the signature of Gov. Jim Doyle to make the sun’s direct energy a renewable resource in Wisconsin.

The good news is that a broad list of business, trade and environmental groups, including Orion Energy Systems Inc., are working with the governor and the legislature to make this happen.

“Direct-use” renewables such as solar hot water heating, geo-thermal heating and “light pipe” technology would soon be included in Wisconsin’s Renewable Portfolio Standard (RPS) as a result of the passage of either the Clean Energy Jobs Act (LRB-3883/1), or independent legislation authored by Sen. Jeff Plale and Reps. Jim Soletski and Ted Zigmunt (SB273/AB401).

The Renewable Portfolio Standard (RPS) identifies those technologies defined as “renewables” in our state.

Why is this good for the people of Wisconsin? Well, the new law will create jobs, reduce our dependence on fossil fuels (Wisconsin imports all of its fossil fuel resources from out of state) and dramatically reduce the emission of greenhouse gases and other health threatening pollutants.
Let’s take a look at the Clean Energy Jobs Act and the independent Senate and Assembly Bills uniquely in regard to the impacts of the direct use technologies being included in Wisconsin’s RPS and particularly, light pipe technology.

As a result of the passage of the direct-use legislation, Orion’s Apollo Solar Light Pipe will be included in Wisconsin’s RPS. Once included, Renewable Energy Credits (RECs) will be developed for the installation and use of this innovative, “direct-use” renewable, which directly converts solar energy into the light used to illuminate the interiors of large commercial and industrial buildings. Due to the advent of the “tradable” RECs – which can be used to meet their renewable generation requirements – utilities will provide incentives for the installation of light pipe and other direct-use technologies spurring jobs creation in both the manufacturing and construction sectors of our economy.

It is estimated that the passage of these bills would provide as many as 1.4 million person-hours of work for unemployed Wisconsinites for the installation of the Apollo® Solar Light Pipe alone.
In regard to reducing Wisconsin’s dependence on fossil fuel, light pipe technology provides extreme energy savings by allowing major facilities to operate “off the grid” for their lighting needs for eight to thirteen hours per day. Thirty-five percent of commercial energy consumption is dedicated to lighting building interiors.

The installation of light pipe technology across the state would also drastically reduce the demand for electricity, which in turn reduces the need for generation and therefore causes a reduction in the emission of greenhouse gases and other pollutants. Reducing emissions would have a positive impact on Wisconsin’s environment and the health of our citizens.

Orion’s Apollo Solar Light Pipe is customarily installed with Orion’s highly efficient lighting technology and energy control system, known as Intellite II.

When this fully integrated lighting system is installed, including the Apollo Solar Light Pipe, the total annual CO2 reduction for Wisconsin would amount to 732,237.9 tons.

Passage of either the Clean Energy Jobs Act or the independent legislation that will include light pipe and other “direct-use” renewable technology in Wisconsin’s Renewable Portfolio Standard will create at least 1.4 million person-hours of work for our state’s unemployed, help rid our dependence on fossil fuels and create a healthier environment for all by limiting the emission of carbon and other pollutants. These bills speak to Wisconsin’s most critical needs: jobs creation, energy independence and a healthy environment.

 

Neal Verfuerth is founder and chief executive officer for Orion Energy Systems Inc. Based in Manitowoc, Orion designs, manufactures and deploys energy management systems.

There is no bigger stage for climate change than this week’s global-warming gathering in Denmark. Let’s hope when the time comes to discuss the world’s energy and environmental future, global leaders - including President Barack Obama - focus on the practical as well as the promising.

Without question, the most significant opportunity to save energy and the environment stretches high into the sky along the streets and avenues of our cities. Commercial and industrial buildings consume the most energy around the world, bar none.

Admittedly, building efficiency is not sexy like renewable energy sources wind and solar, which are certain to be the darlings of the climate conference. But better-run skyscrapers and factories hold the cheapest, cleanest means of extending world energy supplies. And, by controlling our energy usage, we individually and collectively control our emissions, our energy security and our economic future.

The benefits of using less energy correlate directly to a sustainable environment and a sustainable economy. More efficient buildings produce four times the environmental impact of renewable energy, which seems to have all the momentum toward becoming the future of global energy supply. Every dollar an executive or building owner saves in overhead, such as energy expense, is equivalent to three dollars of revenue.

Yet, less than 1 percent of all commercial and industrial companies use advanced technology to measure and manage energy spending. Nearly all companies, however, use advanced technology to measure and manage telecommunications spending. In other words, companies will scrutinize employee cell phone bills while completely ignoring wasted energy at 100 times the cost.

What's most compelling are the actual savings that can be realized through energy efficiency solutions for buildings. The reduction in energy use, depending on the source, could save the United States an estimated $1.2 trillion by 2020 with an annual investment of $50 billion in energy efficiency technologies.

The biggest barrier, however, seems to be lack of understanding by many of those who own the buildings and the companies - especially small to mid-sized businesses - with the most opportunity to benefit. One survey of hundreds of business executives, for example, found: 87 percent have room to improve on energy management, 74 percent do not have a handle on energy cost and 59 percent are not well-positioned in house to control energy.

More than likely, U.S. politicians, policymakers and scientists at this week’s climate conference will take time to reflect and to look for new ways of doing things. This is paramount to improving what The Financial Times recently described as necessary to creating the next great stride in the standard of living.

In their special report on the future of energy, Financial Times’ writers accurately stated every great change in living standards throughout history has had a revolution in energy at its heart. The revolution we need as a country - and as an economy - is one that focuses on what’s right before us.

Coming out of the Denmark climate conference, my hope is that the United States realizes we already hold the keys to our economic and environmental futures. Those keys open the front doors to our nation’s buildings and unlock numerous opportunities to save energy, cut emissions and improve profitability.

 

Paul Oswald is president of Environmental Systems Inc., which has offices in Milwaukee and Chicago.

Since 2002, Jim Haertel and his investors have been working to bring a Hofbrauhaus restaurant and beer hall franchise to the buildings that they own at the former Pabst brewery.

However, those plans were ultimately dashed by the credit crunch that was created by the Great Recession and last year’s financial industry meltdown, Haertel said today.

Cincinnati Restaurant Group Inc., which has the license rights for Hofbrauhaus in Wisconsin, announced today that it has ended negotiations with Haertel and his investors, known as Brew City Redevelopment Group LLC.

“We just couldn’t come to terms,” said Andi Udris, president of Cincinnati Restaurant Group.

Haertel and his group own the former gift shop, visitor’s center, Blue Ribbon Hall and Pabst corporate offices. The rest of the brewery complex is owned by Zilber Ltd. founder Joseph Zilber, who is redeveloping the complex into a mixed-use urban neighborhood called The Brewery.

Brew City Redevelopment Group and Cincinnati Restaurant Group planned to split the $6 million cost to renovate the buildings and install equipment for the Hofbrauhaus, Haertel said. However, Brew City could not obtain financing for its $3 million share, even though it owned the buildings and had an anchor tenant for 70 percent of the space.

“In the good old days, that would have been plenty,” Haertel said. “But the current conditions in the (capital) markets have made it difficult for us to obtain $3 million in financing to do our part to put a Hofbrauhaus in the building.”

Even with the property ownership and an anchor tenant, banks wanted a guarantee for the lease or the loan, Haertel said. Cincinnati Restaurant Group declined to guarantee the lease, and Brew City could not convince anyone to guarantee the loan.

The group talked to Zilber about providing a loan guarantee, Haertel said. But that never came together, and now Haertel expects Cincinnati Restaurant Group to lease space in two of Zilber’s buildings.

“Zilber began to get involved,” he said. “It seemed to help us try to get financing. But in the end, they have taken our tenant away to a couple of their buildings. What started out as help, ended up being a replacement.”

Cincinnati Restaurant Group executives say they still want to open a Hofbrauhaus location in Milwaukee and will consider locations in the downtown area, including other buildings at The Brewery.

“We remain extremely confident in the Milwaukee marketplace,” said Cincinnati Restaurant Group chairman Maximilian Erlmeier. “We will continue to explore historic buildings that may be available at The Brewery.”

For a Hofbrauhaus location, Cincinnati Restaurant Group needs 15,000 to 20,000 square feet of indoor space and 3,000 to 5,000 square feet of outdoor space for a beer garden, Urdis said.

Zilber is hoping the Hofbrauhaus will open somewhere in the former Pabst brewery complex.

“We will do everything we can to find them a location that would allow us to bring a quality operation like the Hofbrauhaus to The Brewery,” said Zilber’s assistant, Mike Mervis.

Mervis declined to say which buildings that Cincinnati Restaurant Group is considering at The Brewery. Haertel thinks the Hofbrauhaus will be located in buildings 20 and 21, the former Brew House and Mill House buildings, with an outdoor beer garden on the west side of the buildings.

The Brew House buildings is the building that contains six historic copper brew kettles.

Oregon, Wis.-based Gorman and Company Inc. has a contract to purchase the Brew House and Mill House buildings from Zilber, who has been selling some of the buildings in the complex to other developers.

“My best guess is Zilber and Gorman gave (Cincinnati Restaurant Group) a deal they could not refuse,” Haertel said. “We had agreed on a rent (with Cincinnati Restaurant Group) and it has never changed because of anything. It’s just business.”

Haertel said he and his investors will slowly build up the use of their buildings, which they call Best Place. A gift shop selling vintage items from the brewery will open tomorrow. The buildings are already open for tours and group event rentals. Haertel said he is finalizing conditions for a liquor license and will open a pub in the former visitor’s center area soon.

Eventually, a full-scale restaurant and bar may occupy Blue Ribbon Hall, he said.

“We’re going to take it in steps,” Haertel said. “We plan to just keep reinvesting our profits until this entire building is redeveloped, using our own organic growth.”

All of those naysayers who believe Wisconsin is a terrible place to do business need to take a deep breath and do some serious recalibrating.
To be sure, like every other state, Wisconsin has its share of challenges - its high taxes and the dropout rate at Milwaukee Public Schools always quickly come to mind. And no doubt, Wisconsin has taken it on the chin with the closures of automotive plants in Janesville and Kenosha.
The losses have made the Milwaukee 7 a convenient target for people who make a habit out of trashing Wisconsin's business climate.
However, the negative drumbeat news cycle needs to take a break sometimes, and Tuesday was one of those days.
BizTimes had known for weeks that Milwaukee is one of two cities to be finalists in a Spanish company's search to build its new North American headquarters. We were told by city officials that we should not report that fact, however, because doing so could jeopardize Milwaukee's chances of landing the project.
Well, Wisconsin Secretary of Commerce Richard Leinenkugel blew those concerns out of the water Tuesday when he reported by phone from Bilbao, Spain, at the Metropolitan Milwaukee Association of Commerce (MMAC) all-member meeting that he had just concluded a "12-hour cage match" presentation to a Spanish company.
Leinenkugel is courting the Spanish firm with a southeastern Wisconsin delegation that includes officials from the Milwaukee 7, We Energies and Richard "Rocky" Marcoux, commissioner of the Milwaukee Department of City Development.
Milwaukee is "at the finish line" of landing the company's North American headquarters that would bring hundreds of jobs to southeastern Wisconsin and could also generate more work for vendors in the region, sources said.
"It's between us and one other city," said one source close to the negotiations.
Officials representing the Spanish company have been studying the business climate in southeastern Wisconsin for weeks, BizTimes has learned. The company sent representatives to the MMAC's Future 50 program in September, and they toured several southeastern Wisconsin factories, including the GenMet metal fabrication plant in Mequon. The plant tours were designed to give the Spanish company some insight about the array of potential partners and vendors in the region, sources said.
Sources said they expect the Spanish company to make a decision on the site for the North American headquarters by the end of the year.
Sources declined to identify the Spanish company that is being courted by Milwaukee.
We've got a pretty good hunch, however. Think alternative energy. Spain has become the world's second-largest producer of solar and wind energy in the world (behind Germany).
Spanish companies such as Gamesa, a manufacturer and installer of wind turbines, Iberdrola, a power group, and Acciona Energia, a wind park developer, are becoming global players in the fast-emerging alternative energy markets.

Republic Airways jobs
The news that Milwaukee is a finalist for the Spanish company's jobs came on the heels of Republic Airways Holdings Inc.'s announcement earlier Tuesday that it will save 800 jobs in Oak Creek and move 800 new jobs to the region by the end of next year.
Republic, the new parent company of Midwest Airlines, plans to move the jobs to Oak Creek and Milwaukee's General Mitchell International Airport.
Republic chief executive officer Bryan Bedford confirmed the creation of a Milwaukee hub during the MMAC's meeting at the Bradley Center.
Wisconsin Gov. Jim Doyle announced the use of the state's Enterprise Zone tax credits to help convince Republic to bring the jobs to the state.
Indianapolis-based Republic Airways will consolidate operations in Milwaukee from other cities such as Las Cruces, N.M., and Denver, Colo.
Republic acquired Denver-based Frontier Airlines on Oct. 1.
Bedford praised Milwaukee's pro-business climate as a reason for deciding to bring the jobs here, rather than Indianapolis or Denver.
"We spent a lot of time in the last three months trying to figure out where we can be our best and most competitive," Bedford said.
Bedford also announced Republic will add new routes from Milwaukee to San Francisco and Raleigh, N.C. The company is considering adding service to six more routes.
"Midwest Airlines today is about 45 percent to 50 percent of what it was at its peak. Our goal is to get back to its peak as soon as possible," Bedford said.

 

Mercury Marine jobs
Step back for a moment and recall that Wisconsin also recently beat out Oklahoma to keep Mercury Marine's production plant in Fond du Lac. Wisconsin provided about $70 million in public assistance, along with about $50 million in a loan backed by a Fond du Lac County sales tax and $3 million from the city of Fond du Lac. With the combined package of incentives, Mercury Marine plans to move up to 2,700 jobs to the Fox Valley.

 

Biotech jobs
In addition to the wins with Mercury Marine and Republic Airways, eight biotechnology companies have recently moved from other states to Wisconsin.
Biotechnology in Wisconsin is an $8.7 billion industry with 400 companies and 34,000 employees. Biotechnology is the fastest-growing segment of the Wisconsin economy, with an annualized growth rate of nearly 7 percent.
The state is benefiting from the formation of the Wisconsin Angel Network and the Wisconsin Venture Fund to help facilitate deal flow, investor exchanges and network creation.
In February, Doyle expanded the investor tax credit law as part of an early economic recovery bill. Enhancements included: raising the cap on tax credits for angel investments from $1 million to $4 million; tripling the annual pool of credits available for angel credits, from $5.5 million to $18.25 million per year, and venture credits, $6 million to $18.75 million; and allowing angel investors to claim the entire 25 percent credit on their investment in the first taxable year.
The eight biotech companies moving to Wisconsin are: RJA Dispersions LLC; VitalMedix; Rapid Diagnostek; Aldevron; Flex Biomedical Inc.; Inviragen Inc.; Exact Sciences Corp.; and NanoMedex.
They're moving here from Minnesota, North Dakota, Massachusetts and Florida.
Those relocations recently prompted the Star-Tribune in Minneapolis to write a series (and a related blog item headlined, "Wisconsin kicks our butt") about how Minnesota is losing out to a better business climate in Wisconsin.

 

Jobs from the Flatlands
Meanwhile, Uline Inc. of Waukegan, Ill., will move across the Wisconsin border to its new headquarters in Pleasant Prairie in 2010, bringing 1,000 jobs to a state that is supposedly a terrible place to do business. Uline is investing about $100 million in this God-awful place.
Uline received more than $6 million in incentives and aid from the State of Wisconsin to come here. In addition to Uline, several other Chicago area-based firms recently have opted to build facilities in Kenosha County instead of northern Illinois, including Vernon Hills-based Rust-Oleum Corp. and Lake Forest Village-based Hospira Inc.
And guess what? Business advocates in northern Illinois are now screaming because Wisconsin is luring away so many of their businesses. At a meeting of the Lake County Chamber of Commerce in Independence Grove, Lake County Partners president Dave Young blamed Illinois' "unfriendly business climate" for the flight of businesses TO Wisconsin.
"We have a governor (in Illinois) who goes out of his way to antagonize the business community," Young said at the luncheon, according to the Lake County News-Sun. "Unfortunately, right next door in Kenosha County, Gov. Jim Doyle is very adept at business recruitment and actually enjoys it."
Oh, and there will be more good news. Look for the efforts of the Water Council and Badger Meter Inc. CEO Rich Meeusen to pay off with more freshwater technology jobs in the next couple of years.
On Wisconsin!

Steve Jagler is executive editor of BizTimes Milwaukee.

We need real reform in the financial markets. This reform should include how we regulate and how we audit and enforce these regulations.

Reform will not prevent another crisis that we have just witnessed or the S&L/Mutual Savings Bank crisis some three plus decades ago or frauds such as Madoff's. But reform can catch these problems before they get out of hand, which will reduce the impact on our economy.

• First, we must restore confidence to the secondary mortgage market. Liquidity in mortgages provided by the secondary market is essential to our economy. Banks and S&Ls should not be holding mortgages for long periods of time and should have a market to which they can sell.
  Require escrow for real estate taxes and homeowners insurance for all homes where the home buyer does not have a 20-percent down payment.
• Require that the buyer have a 20-percentcash down payment or that another entity, such as a mortgage insurer, the VA, FHA or Farmers Home Loan Agency, is covering the 20-percent difference between appraisal and mortgage.
• Forbid financial institutions from lending borrowers their 20-percent down payments.
• Ensure that income and assets listed are verified.
• Ensure that appraisals are realistic
• License all appraisers and mortgage brokers nationally, or at the very least, create a standardized system for appraisers and mortgage brokers, including the personnel of any firm issuing paper to be sold on the secondary market.
• Strictly regulate mortgage insurance companies. There have been too many incidents where these firms have had conflicts of interest (using subsidiaries as collateral) or have made risky business decisions that affect their contingent liability funds.
• Require that all use the standardized underwriting and forms issued by Fannie Mae and Freddie Mac.
  Make full disclosure and other paperwork simple to understand. Reduce this paperwork to one or two pages that are understandable.
• Where possible, require that homeowners with less than a 20-percent down payment receive counseling so that they have a budget and so the mortgages they receive are fair, that charges required of them are reasonable and that the property they are buying is worth what they are paying.
• Restrict such practices as "interest only mortgages," balloon mortgages or variable mortgages with teaser rates.

In regards to regulation of the financial industry, it is important to separate the audit and enforcement functions from the influence of politics and business as much as is possible. Politics influences enforcement.

 

A recent example was the firing of Gary Aguirre, an Securities & Exchange Commission (SEC) attorney lauded for his excellent work. He was fired because he wanted to interview John Mack for allegedly giving inside information to Pequot, a hedge fund. (I could have used examples from both Democratic and Republican administrations).

The New York Stock Exchange, the Nasdaq, the Federal Reserve Bank and the SEC did little to go after abuses on Wall Street. For years, Eliot Spitzer was a lonely crusader against Wall Street abuses.

"Self-regulation" by the industries themselves has been not been successful. The Federal Reserve failed to stop abuses in the banking industry through its audits. Their "objective" is to protect banking, but too often this means avoiding confrontation by the few banks that control most of the country's assets.

My suggestion is to create an independent agency that has many features of an inspector general or the General Accounting Office. Fund their budget for seven years at a time. Give a single 10 or 12-year year term to its leadership. Forbid its civil servants from becoming lobbyists or working in the industries they have regulated for five years.

This will not be perfect, but it will go a long way in isolating political influence on the agency.

Furthermore, I suggest that we separate regulation and oversight by an industry's function. Credit, life, health and property-casualty insurance companies manage risk; banks, S&Ls and mutual savings banks lend money. Mutual funds and annuities deal in collective investments. Money managers, hedge funds, financial advisors and stock brokers manage money or offer advice.

Multiple and contradictory regulations need to be reduced, but there should continue to be competition in enforcement. National tests, continuing education and licensing should be national. Licensing by states based on the national model should continue.

 

Bob Chernow is a futurist who predicted the S&L/mutual savings bank crisis, the future of mortgage backed bonds and the recent sub-prime crisis. He works in the financial industry. His opinions are his own.

An attorney is trained to understand that witness statements do not equal the facts. Similarly, Department of Transportation (DOT) estimates do not equal facts. They are opinions and, if politically motivated, are biased.

Let's look at the facts: In a 2008 letter to Sen. Jeff Plale, the DOT estimated that the cost of replacing the Hoan would be $220 million. Now, after one year of deflation, the DOT has inflated the Hoan repair costs to $240 million, as reported in the Milwaukee Journal Sentinel on Monday. To put this into perspective, the entire Marquette Interchange project cost over $800 million. So, the DOT is estimating that the cost to repair an existing bridge is more than one-fourth the cost to build the Marquette, which included the construction of 20 new bridges, some as tall as the Hoan. The DOT also believes, according to Monday's article, that the cost to simply re-paint the Hoan will cost $40 million.

The DOT also gives "facts" from both sides of its mouth. In December of 2002, DOT officials concluded that the Hoan could not accommodate a bike lane because the 6 lane bridge with shoulders was nearing capacity and could not be reduced to four lanes. Now, in 2009, the DOT is proposing a four-lane boulevard with no shoulders and a roundabout to accommodate the 46,000+ daily traffic count. Imagine 120,000 trucks each year trying to navigate a roundabout. Trucks will likely take both lanes to navigate turns, if it's even possible at all.

More facts: the original Marquette Interchange was planned at $1.4 billion and included the replacement of ramps and the 794 connector to the Hoan. After robbing money from the transportation funds to balance deficit budgets, the current administration required DOT to reduce the scope of the Marquette Interchange to approximately $800 million instead of the $1.4 billion by cutting out this connector work. It's no wonder they got done early and under budget as DOT Secretary Frank Busalacchi touted; they did less.

Finally, going outside of the normal transportation planning process, the DOT arrogantly hired HNTB to plan alternatives to the Hoan and its connectors without consulting with the communities this would impact. Is it because the DOT no longer had the needed money to re-deck not only the bridge but also the work that had been cut out of the Marquette Interchange?

Fact: The Southeastern Wisconsin Regional Planning Commission (SEWRPC), the federally designated planning agency for this region, has completed and published its official report for transportation planning through the year 2035, which retains the Hoan Bridge and the 794 freeway as part of an important transportation corridor. This report followed the normal channels with DOT experts taking factual information gained from traffic counts, holding open meetings and getting all the information to form these recommendations.

So, for those who don't want to be irresponsible by not getting the "facts" when planning for the Hoan Bridge, let's include all of the facts. The DOT has done an end-run around the normal planning process and appears to be providing inflated estimates that advance an agenda. MMAC (Metropolitan Milwaukee Association of Commerce) sent a letter to the Governor asking to study this new agenda. My office did check the facts regarding ownership of the land below the Hoan. It was not surprising to find that most of this land is owned by the City of Milwaukee on both the north and south portions of the bridge. The city also owns much of the land used by the Port of Milwaukee that relies heavily on the Hoan for ingress and egress.

My office will continue to feed oxygen to this fire by asking questions about the reason for the HNTB study. It is notable that the DOT is not solving their deficit surrounding the Zoo Interchange or the I-94 corridor. Perhaps DOT thought that the south shore communities would be the least likely to object. If so, I am hopeful that the Coalition to Save the Hoan will show the DOT they were wrong.

Milwaukee County Supervisor Patricia Jursik represents the county's Eighth District.

The proposed state budget has a public policy issue inserted that will require any private development that uses any form of public financing in excess of $2,000.00 to pay a prevailing wage to all laborers involved with the project. 
While this is a laudable goal, the Wisconsin Realtors Association believes that this mandate could increase the cost of development for a particular project anywhere between 10% - 40%. The current form of the mandate has far reaching implications for the life of a development.
As an example, there are two possible scenarios that come to mind that extend well beyond the initial development where the mandate could be detrimental to job creation and new development. After Mr. Developer has developed a new 100-acre business park that required public financing and Mr. Developer has paid the prevailing wage mandate for the development of the land, the prevailing wage mandate is attached to any new development that occurs within this project for the life of the project.
As an example, two years from the completion of the new business park, ABC Manufacturing would like to build a new 50,000 manufacturing facility on a 5 acre parcel of land within the development. Although ABC Manufacturing had nothing to do with the original development ABC will have to pay a prevailing wage to any contractor they select to construct their new facility within this business park.
Another example would include Mr. Real Estate Investor constructing a multi tenant office building in this business park. Mr. Investor will pay a prevailing wage at the time of construction, as well as during the life of the property as tenants move on and the space needs to be re-tenanted. Mr. Investor will have to pay the prevailing wage every time that he has to complete renovations to a space within the property.
There are certainly trades within a development, especially on larger scale and complex developments that warrant paying a higher cost to the contractors to ensure the necessary expertise and quality of the task. There are also areas of construction, such as small-scale tenant improvements, where small businesses compete more on flexibility, speed, and price. The need for a highly skilled laborer and the additional costs that they bring are not necessary for these types of projects. The prevailing wage mandate will drive up the cost of development for developers, investors, and for businesses.
The end result will be that the development does not happen or the cost will be passed on in one or all of the following ways; to the taxpayers in the form of a larger request for public funding, to the tenant in the form of higher rent, or to the business in the form of a higher cost for the facility.
A strong argument can also be made that small businesses associated with the field of construction will be disproportionately affected by this mandate because their distinct competitive advantages include competing on pricing, flexibility, and speed. All things being equal on pricing, if a developer is faced with paying a prevailing wage to a large union shop who has the reputation of better training and skill level and a choice of paying a prevailing wage to a small business owner who does a quality job but doesn’t necessarily have the access to the skilled and trained labor pool, the easy selection would be to employ the large union shop. The small business will also be hampered by the increased burdens of record keeping and confusing classification issues both of which are issues that a human resource department could easily handle, however such departments are rarely in place at small contracting companies.
The use of public financing in the form of TIF districts, new market tax credits, and other public incentives are extremely important tools to spur economic development. Two projects that were recently in the news and related to Wisconsin included the announcement by the State of Michigan offering nearly $150 million in tax credits and incentives to Johnson Controls for a state of the art lithium-ion Battery Plant and the State of Louisiana offering $9 million in public incentives to lure Thomas Industries away from Sheboygan. In a globally competitive market place the State of Wisconsin should be looking at ways to enhance the effectiveness and use of appropriate public financing options to spur economic development as opposed to creating obstacles to the implementation of a successful tool that encourages job creation. 
Prevailing wage is certainly warranted for many aspects of larger scales developments, however mandating prevailing wage for all aspects of a development with $2,000 or more in public funding will drive up the costs for developers, businesses, and taxpayers, potentially prevent projects from happening, and also impact the ability for small businesses in construction to land contracts because their competitive advantage on pricing will be taken off of the table.

Jeff Hoffman is the president of IBA-Wisconsin, the Commercial Association of Realtors Wisconsin Government Affairs Committee and is a vice president with Pewaukee-based Judson & Associates, S.C.

Farmers, businesses and anyone who owns property will be threatened by increased lawsuit abuse under a provision in Governor Jim Doyle’s budget. 

Called "joint and several liability," the provision would require businesses or individuals to pay up to 100 percent of the cost of a lawsuit even if a jury says they were as little as 1 percent to blame.

Under present law, if you are found 1 percent at fault, you are responsible and liable to pay 1 percent of a judgment awarded to an injured party. The person that is 99 percent at fault has to pay their share. That's fair and reasonable. But a provision in the governor's budget proposal will change that.

Farmers could literally lose their farm and business owners might have to close their doors if they are a victim of this unfair proposal. This bill denies fairness and equity to those that have worked hard to build up a business or acquire property.

Support for this comes primarily from the trial lawyers. They argue that injured parties should be compensated for their injuries and loss. Yes, injured people should have the opportunity to sue and recover for their losses, but the money should come from the people that are responsible.

Under the governor's proposal, if the person that is mostly responsible for injuries  has inadequate or no insurance, then the other party with insurance, property or assets will be forced to pay. Shifting the responsibility from those that are mostly at fault to those that have virtually no fault is unfair and punitive.

This provision, if it becomes law, could make a farmer or business owner responsible for 100 percent of the cost of someone else's action.  

Of all businesses, farmers are among the most at risk from the lawsuit abuse the budget provision invites. Farmers may not make a lot of money. But, because they require a lot of land and equipment to make a living, they can be targets for the predatory lawsuit abuse this legislation encourages.

A plaintiff's attorney might argue that the farmer's large combine sitting along the roadside may have momentarily distracted a careless and speeding driver who then drove through a stop sign and severely injured someone. A jury may say the farmer is 1 percent at fault and award the injured party $1 million. If the driver has inadequate, little or no insurance or assets, then the farmer is responsible for the balance of the jury award. After the farmer's insurance company pays its limit, then the farmer can start selling his land, machinery and cattle so that he can satisfy the judgment. This will put him out of business. Under current law, the farmer would have been responsible for only 1 percent, or $10,000, and the farmer likely would have had insurance to cover that amount.

There are two ways to prevent this. One is to buy millions of dollars of liability insurance coverage. The other is to call your state senator and state assembly person and tell them you want this out of the budget.

This proposal is bad for farmers, bad for business, bad for people that have assets and bad for Wisconsin.

 

Jim Tlusty is president of the Wisconsin Association of Mutual Insurance Companies.

Editor's note: Milwaukee Mayor Tom Barrett today delivered his State of the City Address at the Harley-Davidson Museum. The text of his speech follows in a special edition of the Milwaukee Biz Blog.

Fellow Milwaukeeans and special guests, I am pleased to stand before you to present my fifth report on the State of our City. Thank you, Gail for that welcome and introduction, Harley-style.

Welcome to Harley-Davidson's world-class attraction and welcome to the Menomonee Valley. When I took office in 2004, the Harley-Davidson Museum project was at a standstill. I immediately committed my administration to moving forward with the plans and together, with Harley-Davidson and the Common Council, this incredible cultural asset rose out of an old public works yard.

We also saved the taxpayers money by consolidating two public works facilities into one. These projects are never easy, but they are certainly worth our efforts. Thank You Harley-Davidson for your commitment to Milwaukee.

I chose this venue not only because of the Harley-Davidson story, but also because of the story of the Menomonee Valley. I hope when you drove here this morning you took Canal Street, and if you didn't, I strongly encourage you to drive through the Valley soon.

What you see today is in stark contrast to what you would have seen just five years ago. What was then the City's biggest eyesore has become home to growing companies and first-rate attractions. It's an invigorating drive, and during a time when the economic news is not good, it's a great example of what forward thinking can achieve.

It is because of the collective efforts of all our Valley Partners that The International Economic Development Council recently recognized Milwaukee with an award for its achievement in redeveloping the Menomonee Valley. The Valley was recognized as one of the world's 25 best economic development projects. Drive through it, and you'll see why. The Harley-Davidson Museum rightly deserves all the praise and press it receives. This company has survived the Great Depression, the economic turmoil of the 1980s, and other difficult times. What hasn't grabbed a lot of headlines is Harley's commitment to its historic west-side neighborhood. It's there where you'll find the Harley-Davidson Targeted Investment Neighborhood strategy at work. The targeted investment initiative dedicates public and private resources to improving quality of life and strengthening the neighborhood. Working with the City, Harley employees and residents around its headquarters have worked to address nuisance properties, improve public safety, clean up litter, and make home repairs. In fact, 48 percent of neighborhood residents participated in this effort.

I am confident Harley-Davidson will continue to be one of the most successful brands associated with the City of Milwaukee. We are all facing difficult and uncertain times. But just like Harley-Davidson,

Milwaukeeans are resilient. I am fully confident that Milwaukee will withstand the current economic downturn. We will make smart investments, continue to build strong partnerships, provide training to our workforce and improve our public schools. We WILL emerge as a stronger and more competitive city.

Even during this economic downturn, we see signs of optimism. In late 2008, we transformed a brownfield into a success story. We used a remediation strategy to help a central-city business expand in its current location. Medovations, a medical products company, embarked on a $3 million expansion, maintaining its current workforce and adding 12 additional jobs. This is the first physical expansion of this company and we are thrilled to put a brownfield back to use. Equally exciting, the company hires nearly all of its employees from the central city, and provides on-the-job training.

The City celebrated the ninth groundbreaking in the Valley with Charter Wire's new facility, a facility that will be home to 115 employees. Elsewhere in the Valley, the Canal Street Commerce Center, the Harley-Davidson Museum and Derse have all opened for business, and the Potawatomi Casino has expanded.
Through the development of more than a dozen projects, more than 2000 jobs have been created.

I'm proud to say that one of the first new businesses in the Valley is already exceeding our expectations. Palermo's Pizza now has 400 employees and is strongly committed to my Summer Youth Jobs Initiative. In an effort to replicate the success in the Valley, the City has invested $6.4 million in assisting businesses in the 30th Street Industrial Corridor. Through the use of our TIF financing tool, we assisted DRS in upgrading its facility. In 2009, we plan to tackle three of the worst brownfields in the 30th Street Industrial Corridor.

The old tannery on 32nd & Hampton will be part of the Bishop's Creek development.

Further south, we have our sights set on the former Tower Automotive plant, and we're going to clean up the former Esser Paint factory on 31st & Galena. Great progress is being made on Milwaukee's south side in the Airport Gateway Business Improvement District. I'd like to thank Alderman Terry Witkowski for his leadership. We couldn't be more pleased with the progress on the Brewery Project. This $205 million redevelopment will be the first 'sustainable' LEED-certified neighborhood. The city assisted with a $29 million TIF to fund demolition, environmental cleanup, new 'green' streets, sewers and sustainable public improvements.

The Keg House was converted into the Blue Ribbon Lofts. And, we celebrated when the newly-converted Boiler House welcomed it first two commercial tenants. I'm grateful to Joe Zilber for his continued civic philanthropy, and I look forward to working with him for many years to come. One of the keys to a stronger neighborhood is a stronger workforce. I want our workforce development to be the best in the nation in helping those most in need find family-supporting jobs. Since taking over Workforce Investment, we've created a more demand-driven and customer responsive system with activities to connect employers with employees.

The Workforce Board has identified key new partnerships with City employers, such as Supersteel on the Northwest side. Through its customized welding and manufacturing skills training program, the Board helped meet Supersteel's need for an additional 26 trained employees. Growing and attracting green industries is central to my vision for Milwaukee.New green technologies create jobs and lower costs. A 2008 sustainability survey ranked the 50 largest U.S. cities based on water quality, recycling and energy efficiency efforts. Milwaukee ranked 12th, up from 16th in 2006.

And we're not slowing down.

At the current rate of water use, the U.S. will need 16 trillion additional gallons of fresh water per year by 2020. This is equal to one-fourth of the combined outflow of ALL the Great Lakes. 1.2 billion people worldwide suffer from a lack of clean water. 2.6 billion people lack adequate sanitation, primarily due to water conditions. Milwaukee must grow its water economy. Here in Milwaukee, our companies have developed cutting-edge research and technologies associated with treating water and preserving water quality.

We're also home to companies that invent and produce water-quality related equipment. I'm not talking about selling our water. I am talking about growing and selling our expertise with treating freshwater. Water WILL be one of the largest economic growth sectors in the world over the next few decades. And Milwaukee can be the hub for freshwater technologies and research if we do something NOW to plan for our future.

That's where the Milwaukee 7's Water Council comes in. It has a membership of more than 100 water technology companies. Combining that business innovation with UWM in a School of Freshwater Sciences AND the research of the Great Lakes Water Institute is a shared goal that must be realized. Governor Doyle has authorized the school in his budget. Now, we must work to ensure that the financial commitment is there at the end of the state budget process. Imagine a School of Freshwater Sciences with a front door on our incredibly beautiful lakefront.

On the near-south side, we will have the School's freshwater research facilities and a water technology business park. We can and must accomplish this. I want to thank Badger Meter's Rich Meussen, UWM Chancellor Carlos Santiago and GMC President Julia Taylor for their leadership in shaping and pursuing this goal, and I pledge that I will do all I can to make the school and the water technology park a reality. Innovations in the way government delivers services will also improve Milwaukee's competitive standing.

Over the past few months, I have been in discussions with MMSD over its annual $14.6 million natural gas bill. We think it's time for a less expensive option. Just yesterday, I announced that Veolia Environmental Services and MMSD will proceed on the construction of a 17-mile methane gas pipeline that will capture landfill gas in Muskego and deliver it to the Jones Island Water Treatment Facility. Presently, the landfill gas is flared off at the landfill. That's money going up in smoke.

The methane gas will be transported through the pipeline and then converted into a fuel source to heat and dry Milogranite. With the installation of five new methane gas turbines, MMSD will be able to meet its electrical needs and eventually produce excess electricity to put back on the electrical grid. This project will result in lower customer bills for families and businesses, especially our businesses that use a lot of water in production...think Miller beer.

This is a great win-win for businesses and the environment. I want to thank MMSD Director Kevin Shafer, Commissioners Preston Cole and Alderman Ashanti Hamilton, as well as the staff from MMSD and Veolia. This pipeline is also ripe for federal stimulus dollars and we're going to do all we can to get the funding for this and other job-producing projects that help to improve our infrastructure.

I know there are critics of President Obama's stimulus plan. I am not one of them. Congress and the President have made the decision to spend the money. Since our taxpayers are going to help pay that money back, I'd much rather have that money spent in Milwaukee, Wisconsin, than Milwaukie, Oregon.

Since last November, I have been working with Congresswoman Gwen Moore, Congressman Dave Obey, and Senators Herb Kohl and Russ Feingold to make sure Milwaukee's needs were addressed in the bill. Last Friday I met with President Obama and members of his cabinet. I want to also acknowledge the leadership that Common Council President Willie Hines has brought to this issue. The Council and I understand that spending wisely and putting Milwaukeeans to work is paramount. Thank you, President Hines. We have the opportunity to invest in our infrastructure and our workforce. In these difficult times, we have to do all we can to build upon both. Improving our local roads is good for residents and businesses alike.

Attacking lead poisoning lowers health care costs. Weatherizing our older housing stock reduces energy bills and improves the value of City homes. Leveraging federal funds for our police department helps keep our streets safe.

Repairing and improving the KK River channel will enhance the value of nearby neighborhoods and add to the City's green space. Cleaning up the environmental problems at the old Tower Automotive site will lead to future development, more jobs and an increase in the City's tax base. Investing in high-speed and commuter rail will enhance Milwaukee's standing as the state's center of commerce and a national destination. These are the types of activities I want to pursue for funding. These are investments that will pay off in the future and investments that are worth making. We must continue to grow Milwaukee.

In order to grow Milwaukee, we will need to capitalize on partnerships at all levels. Governor Doyle and I recently formed a partnership with the Milwaukee donor community to study the finances of the Milwaukee Public Schools. I'm expecting the work and findings to be completed within the next few weeks. The Governor and I will then present a report and prepare legislation to be taken up by the State Legislature. I can tell you that the briefings I have had on the schools so far are some of the most sobering and difficult meetings I have had since becoming mayor.

The fiscal challenges facing MPS are serious and will require both short and long-term solutions. There are a number of factors that drive the district's financial bottom-line: enrollment, excess facilities, district spending and state school aid formulas. As you know, for years I have been fighting to fix the flaws in the funding of the Milwaukee Parental Choice Program. No matter how you feel about school choice, the fact is Milwaukee property taxpayers pay a disproportionate share of the program's costs.

These costs get attached to the Milwaukee Public School levy, drive up our property taxes, and decrease the amount of money that flows into our classrooms. I am hopeful today that this scenario is about to change. Governor Doyle has included in his budget a provision that phases out after five years the property tax burden caused by not including school choice program students in the calculation of school aids for Milwaukee.

If this provision is included in the final state budget - and I strongly encourage all of you here to contact your state legislator and tell him or her to support the provision - Milwaukee taxpayers will receive $38 million in property tax relief once the phase-in is fully implemented. In the first year alone, we will receive $10 million in tax relief. This is a huge step forward and I want to express my thanks to Governor Doyle. Fixing the school aid funding flaw is only one piece of the puzzle. Unfortunately, there are a lot pieces and not all of them fit together nicely.

As we have worked through the fiscal review of MPS, the issue of school governance has naturally risen from the discussion. I said a week or so ago that it is time for this community to have a very frank and serious conversation about the future of our schools. I don't believe that I'm alone in asking if the structure we have in place today is the best structure to address the issues facing Milwaukee Public Schools now and into the future.

The review of school finances does not address the governance issue. It is the district's finances and performance that raise the governance issue. I have the responsibility to do all I can to ensure the growth and stability of our great city. That responsibility includes doing everything I can to improve the Milwaukee Public Schools. Hiring and retaining great teachers, getting more dollars into the classroom and preparing our students for a bigger and more competitive world are what I want - what most of us want. Improving our schools will not be accomplished with any magic potion or any quick fix. That's why now is the time to have that very frank conversation about the future of MPS. It's a conversation that should be conducted with civility and reason. Teachers are dedicated public servants. A career in the classroom is significant and one involving a great deal of personal sacrifice. Parents rightly want the best education possible for their children and our students should always be our main concern.

Unfortunately, City government is not immune to the international economic downturn. I will prepare our next budget so that it's balanced and doesn't over-burden our residents and businesses. There will be tough cuts.

Not surprisingly, the City's finances are closely related to the condition of the economy. During my first five years in office the City's budget has balanced City services while dealing with declining State aid in a fiscally responsible way. That trend will continue as we address our priorities in difficult times. Governor Doyle's budget contains relatively modest shared revenue cuts. The cuts could have been deeper and I appreciate the Governor's efforts to maintain a funding freeze in 2010.

Nevertheless, the City's budget picture is very cloudy. It is more important than ever that the Mayor and the Common Council address these serious fiscal issues as collaboratively as possible. To that end, I am moving forward on a suggestion offered by Aldermen Michael Murphy and Nic Kovac that we implement joint fiscal planning discussions, which will also involve the Comptroller and representatives from the private sector. In addition, the reconstituted Capital Improvements Committee has the potential to provide serious and well-informed discussion regarding our budget priorities for infrastructure and public buildings. I've also directed my cabinet to continue developing partnerships that will produce efficiencies and tax savings.

From the day I first took office, I have made public safety my top priority. With scarce municipal resources, I still put more cops on the street. The cooperation among police officers, the clergy, community agencies and individuals has led to some very gratifying results.

Homicides of young African American men plunged 65 percent last year-from 54 in 2007 to 19 in 2008. That's still too many homicides and we have much work to do, but it is an astonishing one-year drop. Violent crime is down in all categories.

I am grateful to all the men and women of the Milwaukee Police Department for their hard work. The City funds numerous activities that help to reduce violence in our neighborhoods as well. From the City Attorney's office and the Department of Neighborhood Services, to the Health Department and its focus on family violence prevention through the Commission on Domestic Violence and Sexual Assault, we are making a difference. There is a shared desire in Milwaukee to make our city safer and stronger by reducing crime.

My Office of Violence Prevention has been bringing community stakeholders together. I offer my appreciation to the Homicide Review Commission, our partners in the District and U.S. Attorney's offices, neighborhood groups, and members of the clergy. It's people like Elder Ruben Madison Jr., block club captain on the 3100 block of N. 21st street, who are helping to make the difference. He's teamed up with others to rid the neighborhood of nuisance properties and drug dealing. And with the help of his community liaison officer, enlisted many allies who have worked tirelessly to take back this block. They've done it so well, they're now moving on to the next block and will help the residents there organize their own improvement effort. I'd like to recognize Elder Ruben and the other individuals for contributing to the success of this effort. Please stand and be recognized. Adam Stephens of the City Attorney's Office... Ron Roberts and Matt Dama of the Department of Neighborhood Services... Jake Corr of the District Attorney's Office... Taleeba Mateen and Al Hegwood of Safe & Sound AND, Ray Robakowski, of the Milwaukee Police Department.

I also want to recognize Tina Chang of Syslogic and Don Layden of Metavante for stepping forward and responding to Chief Flynn's request for computer technical support. The department's focus is on data-driven policing, making its IT systems critical to its crime-fighting strategy. Tina is with us today and on behalf of city taxpayers, I thank you.

While crime is down, unfortunately, foreclosures are up. Currently, there are more than 1,800 bank-owned foreclosed properties in the City and more than 4,700 foreclosure filings. Families are being disrupted and our most vulnerable citizens are being impacted. Tenants in foreclosed homes are being evicted with little or no notice. Vacant and boarded-up homes can undermine a neighborhood. They also impact the City's tax base. We're meeting this crisis head on - with strong partners. I convened the Milwaukee Foreclosure Partnership Initiative to help. This group assisted us in developing a coordinated strategy to address the foreclosure issue. More than 100 volunteers representing a broad range of community interests answered the call. I thank them all for their efforts. The partnership developed a plan to intervene with homeowners currently at risk, stabilize neighborhoods and prevent foreclosure issues from developing in the future.

Here are a few of the steps we're taking as a City: Milwaukee will soon launch a Homeownership Consortium that will enhance homebuyer education and financial literacy efforts. We are moving forward with a Court Appointed Mediation program that will bring lenders and borrowers to the table. Similar programs in other parts of the country have achieved considerable success. Thank you to Catey Doyle and the Legal Aid Society for spearheading this program. Alderman Joe Davis and I have been working to secure funding to launch this effort. I'm pleased to announce the City will be contributing $100,000. Thank you, Alderman Davis for your support. And just yesterday afternoon, I spoke to Attorney General J.B. Van Hollen who indicated that his office would contribute a significant amount to the mediation effort as well. In addition, the City has received $9.2 million of federal funding to help address the foreclosure problem. Our plan for using those funds has already been approved by HUD. The funding will be available in a few weeks and we are moving forward to help homebuyers, responsible landlords and developers put foreclosed homes into use. If we are to become a thriving economic engine fueling others, then we will need to build on our regional partnerships. The time is now with the federal stimulus on its way, and the opportunities are exciting.

We need to support and pass the Regional Transit Authority legislation. Our region is much more than interstate highways. An RTA that funds and operates transit will be an asset to Milwaukee and to the region. With an RTA in place we can reverse the death spiral of the current County-operated transit system, expand transit services so workers can be connected to regional jobs and extend commuter rail from Kenosha to Milwaukee. I'm asking all regional leaders to join me in supporting the high-speed rail initiative. There's $8 billion in the stimulus package for this and it has Milwaukee and Wisconsin written all over it. It is also time for regional leaders to join together and demand that federal and state transportation officials recognize that transportation is more than widening highways. It's also about local roads and mass transit.

The first action we should take is to re-direct the state's $21 million appropriation for the construction of the Pabst Farms exit. That money should go into local roads. Let's put those dollars to work repairing potholes and paving local roads that are heavily traveled right now. In tough economic times, we really do need to appreciate what makes Milwaukee such a great place. For example, in 2008, we tied for the second lowest number of fire deaths in well over 50 years. Thank you, Chief Doug Holton and the brave men and women of the fire department. The Health Department formed a partnership with both the Boys and Girls Club and the Fire Department to provide immunizations to Milwaukee citizens. During 2008, the Health Department provided more than 30,000 vaccinations to children and adults representing a 14 percent increase over 2007. Thank you, Commissioner Baker and the staff of the Milwaukee Health Department for your hard work. Thanks also to the many people who are working to help students through the I Have A Dream Milwaukee Program. We officially started our program this past September at Clarke Street School. Last year, we saluted the Kellners' for their generous contribution to cover college tuition costs for the entire first grade.

This year we salute the Brady Corporation for taking on the entire second grade. CEO Frank Jaehnert from Brady is with us today. Thank you, Frank. Thanks to all of you who have participated in my summer youth jobs program. We all need to help build the skills of Milwaukee's future workforce and provide hope in the lives of young people. That's why I'm asking you again to join the Earn and Learn Team. I'm very pleased John Kissinger of GRAEF is the co-chair of this year's program and is with us today. Thank you for your partnership in this very worthwhile endeavor.

Finally, I want to follow-up on an announcement I made at last year's State of the City address. In tough economic times, with less money for family vacations, what better way to spend a summer weekend than to watch the Great Circus Parade.

Yes sireee, step right up. On July 12, Milwaukee will once again host this national treasure. Please join us as we celebrate. There will be many more details coming soon.

We are facing economic challenges not seen in this country for generations. It's important that as we leave here today, we remember the difficulties and challenges our parents and grandparents faced as they made their way through the most difficult economic time our country ever confronted. They were optimistic and confident, and that attitude went a long way. I am confident that Milwaukee will weather this economic storm. I believe in the strength of our community and that the progress we've made will continue through successful partnerships with businesses, unions, and community groups. We do not stand alone; we stand and rise together.

I ask you to be optimistic, to be part of the positive change and to join the progress that's happening in our City. I look forward to working with all of you. Thank you for coming.

Tom Barrett is the mayor of Milwaukee.